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J= Enforcement Program are used only to pay for the administration, enforcement, implementation and other services specifically related to PREP. The $17.50 per unit annual fee was proposed to cover only the cost of the additional staff and operational costs associated with the Proactive Rental Enforcement Program and would be used to fund only the cost of the program and not on-going complaint-driven code enforcement activities. In light of the fact that the Planning and Building Agency did not have the necessary resources for the collection of the proposed inspection fee and for the ease and convenience to the residential rental business industry, the $17.50 surcharge fee was proposed to be collected with the business license tax already paid by persons operating such a business on an annual basis. The proposed program provided for initial inspections of all residential rental properties, unless exempted, within designated proactive rental housing code enforcement areas; as well as, reinspection of each property after completion of the initial inspection period. On August 3, 1992, in response to the r~commendation of the Mayoral Task Force committee and to address the growing concerns of the community regarding the deterioration of residential rental units in the City as it related to issues of life, health and safety, the City Council of the City of Santa Ana adopted an ordinance creating a $17.50 sumharge fee to fund the cost of a residential rental inspection program. The ordinance established a sunset date of December 31, 1999 for the $17.50 fee to allow for a "seven year perio(J to undertake the program and evaluate its impact", thus "providing a time frame sufficient to fully monitor [its] results". The ordinance also provided that any extension of the surcharge fee beyond the sunset date would require further action by the City Council. Continuation of Proactive Rental Enforcement Program is essential to the neighborhoods in Santa Ana to provide assurances that the rental housing will not be allowed to revert to the condition which led to the initial concerns for the implementation of an inspection program in 1992. Recurrent poor management by rental owners has become a challenge for the Proactive Rental Enfomement Program inspectors in maintaining improvements gained in the previous areas while conducting inspections in the next neighborhood. Ordinance No. NS-2527 Page 2 of 6